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JET AIRWAYS 2017-18 Annual Report Analysis
Sat, 31 Mar

JET AIRWAYS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

JET AIRWAYS Income Statement Analysis

  • Operating income during the year rose 8.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 94.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.3% in FY18 as against 6.6% in FY17.
  • Depreciation charges decreased by 7.5% and finance costs decreased by 1.1% YoY, respectively.
  • Other income declined by 55.0% YoY.
  • Net profit for the year declined by 150.2% YoY.
  • Net profit margins during the year declined from 6.4% in FY17 to 3.0% in FY18.

JET AIRWAYS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 226,926 245,107 8.0%
Other income Rs m 14,825 6,668 -55.0%
Total Revenues Rs m 241,751 251,775 4.1%
Gross profit Rs m 14,930 784 -94.8%
Depreciation Rs m 6,716 6,211 -7.5%
Interest Rs m 8,587 8,489 -1.1%
Profit before tax Rs m 14,453 -7,249 -150.2%
Tax Rs m -2 0 -100.0%
Profit after tax Rs m 14,455 -7,249 -150.2%
Gross profit margin % 6.6 0.3
Effective tax rate % 0.0 0.0
Net profit margin % 6.4 -3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

JET AIRWAYS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 145 billion as compared to Rs 119 billion in FY17, thereby witnessing an increase of 21.5%.
  • Long-term debt down at Rs 51 billion as compared to Rs 70 billion during FY17, a fall of 27.0%.
  • Current assets rose 34% and stood at Rs 73 billion, while fixed assets fell 24% and stood at Rs 57 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 130 billion as against Rs 129 billion during FY17, thereby witnessing a growth of 1%.

JET AIRWAYS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -65,052 -71,391 9.7
 
Current Liabilities Rs m 119,346 145,052 21.5
Long-term Debt Rs m 69,679 50,856 -27.0
Total Liabilities Rs m 128,823 129,551 0.6
 
Current assets Rs m 54,637 72,997 33.6
Fixed Assets Rs m 74,187 56,554 -23.8
Total Assets Rs m 128,823 129,551 0.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



JET AIRWAYS Cash Flow Statement Analysis

  • JET AIRWAYS's cash flow from operating activities (CFO) during FY18 stood at Rs 17 billion, an improvement of 69.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -16 billion, an improvement of 35% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY17.

JET AIRWAYS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 10,113 17,102 69.1%
Cash Flow from Investing Activities Rs m 16,001 -3,617 -
Cash Flow from Financing Activities Rs m -23,904 -15,649 -
Net Cash Flow Rs m 2,210 -2,165 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for JET AIRWAYS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -63.8, an decline from the EPS of Rs 127.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 609.5, stands at -9.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -1.0 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at -72.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 1,997.6 2,157.6
TTM Earnings per share Rs 127.2 -63.8
Diluted earnings per share Rs 127.2 -63.8
Price to Cash Flow x 2.8 -72.2
TTM P/E ratio x 10.8 -9.0
Price / Book Value ratio x -0.9 -1.0
Market Cap Rs m 56,949 74,954
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for JET AIRWAYS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.5x during FY18, from 0.5x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.1x during FY18, from 2.7x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 10.2% during FY18, from -22.2% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at -6.0% during FY18, from 497.9% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 1.0% during FY18, from 17.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.5 0.5
Debtors’ Days Days 215 191
Interest coverage x 2.7 0.1
Debt to equity ratio x -1.1 -0.7
Return on assets % 17.9 1.0
Return on equity % -22.2 10.2
Return on capital employed % 497.9 -6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how JET AIRWAYS has performed over the last 5 years, please visit here.

JET AIRWAYS Share Price Performance

Over the last one year, JET AIRWAYS share price has moved up from Rs 526.0 to Rs 609.5, registering a gain of Rs 83.6 or around 15.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for JET AIRWAYS and quarterly results for JET AIRWAYS)

Annual Report FAQs

What is the current share price of JET AIRWAYS?

JET AIRWAYS currently trades at Rs 49.0 per share. You can check out the latest share price performance of JET AIRWAYS here...

What was the revenue of JET AIRWAYS in FY18? How does it compare to earlier years?

The revenues of JET AIRWAYS stood at Rs 251,775 m in FY18, which was up 4.1% compared to Rs 241,751 m reported in FY17.

JET AIRWAYS' revenue has grown from Rs 200,041 m in FY14 to Rs 251,775 m in FY18.

Over the past 5 years, the revenue of JET AIRWAYS has grown at a CAGR of 5.9%.

What was the net profit of JET AIRWAYS in FY18? How does it compare to earlier years?

The net loss of JET AIRWAYS stood at Rs -7,249 m in FY18, which was down -150.2% compared to Rs 14,455 m reported in FY17.

This compares to a net profit of Rs 12,019 m in FY16 and a net loss of Rs -21,014 m in FY15.

Over the past 5 years, JET AIRWAYS net profit has grown at a CAGR of -35.3%.

What does the cash flow statement of JET AIRWAYS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of JET AIRWAYS reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 17,102 m as compared to Rs 10,113 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -3,617 m as compared to Rs 16,001 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -15,649 m as compared to Rs -23,904 m in FY17.

Here's the cash flow statement of JET AIRWAYS for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations10,1187,37725,11610,11317,102
From Investments-2,661-2,170-7,16516,001-3,617
From Financial Activity-5,7221,396-24,577-23,904-15,649
Net Cashflow1,7356,602-6,6252,210-2,165

What does the Key Ratio analysis of JET AIRWAYS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of JET AIRWAYS reveals:

  • Operating profit margins witnessed a fall and stood at 0.3% in FY18 as against 6.6% in FY17.
  • Net profit margins declined from 6.4% in FY17 to 3.0% in FY18.
  • Debt to Equity ratio for FY18 stood at -0.7 as compared to -1.1 in FY17.

Here's the ratio/financial analysis of JET AIRWAYS for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)-13.2-5.211.26.60.3
Net Profit Margin (%)-21.1-9.75.46.4-3.0
Debt to Equity Ratio (x)-1.6-1.0-1.2-1.1-0.7

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